Under the flexible exchange rate what is the mechanism of, Financial Management

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Under the flexible exchange rate what is the mechanism of

1. Discuss the advantages/disadvantages of relative valuation methods (Statistical metrics like price to book, sales and earnings) vs. using discounted intrinsic valuation methods like the dividend discount model or discounted cashflow model.

2. Under the flexible exchange rate, what is the mechanism of correcting the BOP deficit/surplus?

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